Shares in Just Eat, the online food takeaway group, ended their first day of trading above the issue price and valuing the group at close to £1.6 billion!
As previously reported, the original discussions about flotation suggested a value between £700 and £900 million but, such has been investor enthusiasm, that the price has soared.
Contrast this valuation, based on very high expectations of expansion and growth, with that of Domino’s Pizza (reporting positive performance and sustained growth on the same day as Just Eat launched), and it’s very clear that Just Eat has a lot to deliver in the next few years.
Profit on Just Eat’s latest trading figures was £14 million, but investors will expect more – and fast.